Essay Example on Economic and social significance of tourism industry

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Economic and social significance of tourism industry The definition of tourism is different for different people because it is an abstract thing which includes a big variety of activities from different industries in economic system In generally tourism can be explained as range of socioeconomic activities which are made for tourists or by tourists It is important to notice that tourism is determined neither as just demand side thing and nor supply side one United nation and world tourism organization 1993 Tourism is not only about leisure activities accommodations and entertainment part it is connected with different parts in system of economy It needs planning organizing coordinating and training in everything Thus tourism associated as functional unit of economy Simoni Mihai 2012 It is generally known that tourism has huge impact on economy of a country It contributes to economic growth by creating new jobs developing infrastructures of country 



Also it helps people to meet new cultures and become more open minded Tourism industry develops very fast in some countries The main goal of tourism in developing countries is to gain foreign currency Employment comes after that It is also very important tool which can destroy poverty finish unemployment and help to meet different cultures help them mix between each other and create new ethical framework which will be right and fair for new humanity Tourism has range of economic influences Social and cultural significance of tourism Someone can argue that tourism industry affects local communities in bad or good way Mathieson Wall 1982 Because sometimes tourists are not so informed and understandable for local customs and traditions But when locals are mixing with other people with different background it can drive to progress of their style of life and gaining habits from tourists Also tourism can help to develop education welfare and health care of locals by making better local facilities and infrastructure for tourists Local people can have chance to attend more entertaining or cultural events expositions and shows which are made to attract tourists in the first place It also helps to preserve local cultural legacy and even revival of handicraft arts because it also attracts tourists Furthermore tourism can stop people to leave their villages and move to urban areas It can be even reversed because if there are jobs people will go for work from cities to villages Economic significance of tourism 



The most important advantage of tourism in country is creating new jobs and making profits from it in all levels such as international local etc It also motivates local people to open new business facilities and by that it makes their area to have better picture Cooper et al 1993 Also the most good thing of tourism is that money which were earned in residence area are spent in visited places Holloway Robinson 1995 This is also a tool which transfer huge amount of money from country which generate wealth to another country which only receive this wealth Earning from tourism is not so easy task to measure in exact numbers But there is one method which can be defined as multiplier effect in a place of destination of tourist The stream of money which is spent by tourists is multiplied because it is spent in different parts of economy Money which were spent by tourist are going to hotels taxi drivers shops etc That is why these money is making revenue in multiple times than initial expenditure The multiplier effect can be determined as sales multiplier output multiplier income multiplier employment multiplier Tourism also affects employment It always needs intense labor force that is why it is beneficial for economy It gives more jobs than manufacture and plants It also attracts many people for work and it offer broad spectrum of jobs which can be for educated and uneducated people

Tourism industry are essential not only in developing countries but also in developed countries as well It is one of the most significant export industry in European Union and USA And it helps to improve unfavorable trade position of developing countries like for example India Tourism also need developed infrastructure facilities which are beneficial and useful for locals and for tourists 

So the importance of tourism in economy is big because it contributes to development of infrastructure Mathieson Wall 1982 Government must develop carefully infrastructure so there will not be overcrowd cluster and harm to environment So the support of government is considerable Tourism also has opportunities of investments because when people travel they see new capabilities where to open new business and what products to sell in certain areas Every developing country has problems with poverty and big difference between wealthy and poor people There are some reasons for that such as low capital income and low national income Tourism can decrease it by creating new job increasing of national income gaining of foreign currency development of regions etc Mill Morrison 1992


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